Press Release

Heritage Financial Announces CEO Succession Plan

Jeff Deuel Named President and CEO of Heritage Bank

Bryan McDonald Named Chief Operating Officer

Company Release - 7/9/2018 4:30 PM ET

OLYMPIA, Wash., July 9, 2018 /PRNewswire/ --Heritage Financial Corporation (Nasdaq: HFWA), parent company of Heritage Bank, has named Jeff Deuel to succeed Brian Vance as CEO of Heritage Bank. Deuel has held the titles of president and chief operating officer of Heritage Bank since 2012. Additionally, Deuel has assumed the role of president of Heritage Financial Corporation.

Vance, who has served as CEO of Heritage Bank since 2003 and CEO of Heritage Financial Corporation since 2006, will remain CEO of Heritage Financial Corporation until July 2019, at which time he will be become executive chair of the company's board of directors. With a commercial banking career spanning 46 years, Vance will work closely with Deuel during the transition, which is the culmination of a thoughtful, deliberate planning process to ensure a smooth executive changeover.

"Brian and his team led the bank through a period of exceptional growth," said Heritage Financial Corporation board chairman Brian Charneski. "After eight years at Heritage, Jeff and the leadership team are well positioned to continue serving our clients across the Pacific Northwest and to continue driving growth and shareholder value." The Olympia-based bank now operates 65 branch offices between Bellingham, Washington, and Portland, Oregon.

In addition to Deuel, Heritage Bank has promoted Bryan McDonald to chief operating officer; he will work closely with Deuel on strategic initiatives and customer objectives. McDonald previously served as executive vice president and chief lending officer for Heritage Bank. He joined Heritage Bank through the company's merger with Whidbey Island Bank, where he was president, and now has a combined company tenure of 12 years. McDonald has more than two decades of management experience in sales, credit, operations, commercial banking and residential real estate.

"Taking a methodical and thoughtful approach to this transition was important to us. We wanted to ensure that our customers, our shareholders and our dedicated, hardworking employees would not experience any notable day-to-day change in the direction of the bank," said Vance. "Jeff and Bryan's knowledge of the communities we serve across the Pacific Northwest, their professional reputations in the industry, and their extended leadership experience within the Heritage Bank family will ensure a seamless transition."

"I look forward to a continued partnership with Brian and the entire leadership team. We are committed to serving the financial needs of all our customers throughout Heritage's footprint, while helping our customers build their own heritage and fueling positive economic growth in the region," said Deuel.

Along with his new role as chief executive, Deuel just completed a term as chairman of the Washington Bankers Association. He has held a variety of leadership positions during a career spanning more than 35 years and encompassing the areas of lending, credit administration, portfolio management, retail and corporate strategies.

About Heritage FinancialHeritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly owned banking subsidiary. Heritage Bank has a branch network of 65 banking offices in Washington and Oregon. Heritage Bank also does business under the Central Valley Bank name in the Yakima and Kittitas counties of Washington and under the Whidbey Island Bank name on Whidbey Island. Heritage's stock is traded on the NASDAQ Global Select Market under the symbol HFWA. More information about Heritage Financial Corporation can be found at www.hf-wa.com. Information regarding Heritage Bank can be found at www.heritagebanknw.com.

TERMS AND CONDITIONS OF USE

The investor relations site ("Site") with which this document is associated is maintained by S&P Global Market Intelligence ("S&P") on behalf of the organization featured on the Site (S&P's "Client"). These Terms and Conditions of Use ("Terms of Use") set forth the terms on which you may use the Site, and the information and materials contained therein (the "Contents"). By using the Site, you agree to these Terms of Use. If you do not agree to these Terms of Use, you are not authorized to use the Site or Contents in any manner, and you should immediately discontinue any use of the Site or the Contents.

S&P and/or its Client shall have the right at any time to modify or discontinue any aspect of the Site or any part of the Contents. S&P may also modify these Terms of Use without notice. You agree to monitor these Terms of Use, and to cease all access or use of the Site if you no longer agree to abide by the Terms of Use. Your continued use of the Site shall constitute acceptance of such modification.

S&P and the Client grant to you a limited, personal license to access the Site and to access and download the Contents, but only for your own personal, family and household use. You may not use, reproduce, distribute or display any portion of the Site for any other purpose, including without limit any commercial purpose. You may use the Site and the Contents for lawful purposes only. S&P and Client reserve all rights not expressly granted, including the right to terminate your use of the Site without notice.

The Site contains copyrighted material, trademarks and service marks, and other proprietary information, including but not limited to text, software, and graphics, which materials are owned by S&P and/or its Client. S&P and Client reserve all rights in the Contents. You agree not to reproduce, distribute, sell, broadcast, publish, retransmit, disseminate, circulate or commercially exploit the Site or the Contents without the express written consent of S&P and the Client.

You agree to access the Contents and the Site manually, by request, and not automatically, through the use of a program, or other means. You agree not to take any action, alone or with others, that would interfere with the operation of the Site, to alter the Site in any way, or to impede others' access to and freedom to enjoy and use the Site as made available by S&P and S&P’s Client.

THE SITE AND THE CONTENTS ARE PROVIDED ON AN "AS IS" BASIS. S&P, ITS CLIENT, AND ANY OTHER PROVIDERS OF THE INFORMATION EXPRESSLY DISCLAIM ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF ACCURACY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

NEITHER, S&P, THE CLIENT NOR EITHER OF THEIR AFFILIATES, SHAREHOLDERS, OFFICERS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, EXEMPLARY , PUNITIVE SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO THE SITE, THE USE OF OR INABILITY TO USE THE SITE, OR THE CONTENTS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN PARTICULAR, S&P WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY YOUR RELIANCE ON INFORMATION OBTAINED THROUGH THE SITE.

It is your responsibility to evaluate the accuracy, completeness or usefulness of any of the Contents available on the Site. Please seek the advice of professionals regarding the evaluation of any of the information on the Site.

The Site does not represent an offer or solicitation with respect to the purchase or sale of any security.

These Terms of Use are the entire agreement between the parties with respect to its subject matter, and it can be amended only via written agreement by S&P. These terms and conditions shall be governed by the law of New York, without regard to principals of conflicts or choice of laws.